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Now or never: China's Evergrande gets last chance to come up with new debt restructuring plan

The Evergrande Group headquarters logo is seen in Shenzhen, in southern China's Guangdong province, on 24 September 2021.
The Evergrande Group headquarters logo is seen in Shenzhen, in southern China's Guangdong province, on 24 September 2021. Copyright Ng Han Guan/Copyright 2021 The AP. All rights reserved
Copyright Ng Han Guan/Copyright 2021 The AP. All rights reserved
By Verónica Romano with Reuters
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Evergrande's liquidation hearing initially scheduled for Monday was adjourned by a Hong Kong court as the property developer's shares hit an all-time low.

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The Hong Kong High Court has agreed to postpone a hearing to wind up property developer China Evergrande Group to 4 December, with Judge Linda Chan saying the next hearing will be the last before a decision is made on liquidating the company.

With the hearing originally scheduled for Monday, Evergrande now has five more weeks to come up with a "concrete" revised restructuring proposal, Chan said. Otherwise, it is likely the firm will be wound up.

On early Monday, the company's shares fell 20% to an all-time low of HK$0.188 (€0.023), before slightly recovering to HK$0.21.

Evergrande's lawyer told the court the firm plans to "monetise the value" of its two Hong Kong-listed units.

The property developer's plans to rework its agreements with creditors suffered a major blow last month when the firm confirmed that its billionaire founder, Hui Ka Yan, and one of its main subsidiaries were under investigation for suspected criminal activities.

As a result, the company was barred by mainland regulators from issuing new dollar bonds, a crucial part of its restructuring plan.

Evergrande, which has more than €283 billion in liabilities, defaulted on its offshore debt in late 2021 and became the face of a debt crisis that has since engulfed China's property sector.

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